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Heska (Nasdaq: HSKA) | Company Profile, History, Competitors

 

Heska (NASDAQ: HSKA) engages in the research, development and manufacture of veterinary products. The company was founded in 1988 and headquartered in Loveland, Co.

The company was founded as Paravax in 1988 in California as a research firm to prevent parasitic diseases in animals. In 1995, it changed its name to Heska. The company sells in-house diagnostic equipment as well as vaccinations for animals.

Business Overview

Heska operates in two main segments:
  • Core Companion Animal Health (81% of 2017 Revenues): Sells in-house diagnostic equipment and related consumables, rapid assays, and digital imaging.
  • Other Vaccines (19% of 2017 Revenues): Sells private label vaccinations for cattle and small mammals.

Core Companion Animal Health Segment

Heska provides point=of-care solutions and full chemistry and hematology analysis in less than 20 minutes.

In point-of-care, Heska sells the Element DC Veterinary Chemistry Analyzer. It has the ability to run 22 tests with a single blood sample. the test can be done in less than 20 minutes.

In Hematology, Heska sells the Element HT5 Hematology Analyzer. It is a five-par hematology analyzer that measures white blood cell count, red blood cell count, platelet count and hemoglobin levels in animals. The test can be done in less than one minute.

In Immunodiagnostics, Heska sells the Element Immunodiagnostic Analyzer. It uses immunoassay technology to detect of Total T-4, TSH and Cortisol. The test takes 10 minutes.

In Blood Gas, Heska sells the Element POC Blood Gas & Electrolyte Analyzer. It delivers rapid blood gas, electrolyte, metabolite, and basic blood
chemistry testing. The test takes 35 seconds.

In Imaging, Heska offers radiography, cloud-based PACS, ultrasound, and imaging services. Heska sells hardware including digital radiography detectors, and acquisition workstation equipment.

Other Vaccines Segment

Heska sells bovine vaccines for Eli Lilly under a long term master supply agreement. All other vaccines products are sold by third parties under third-party labels.

Manufacturing & Distribution

Heska manufactures most of their products by third parties including FUJIFILM, Alere, Mindray, Boule and Esaote. Heska manufactures the heartworm diagnostics tests under a contract with Quidel.Heska has a manufacturing plant in Des Moines, Iowa where they manufacture all the vaccinations and reagents.

As of 2017, Heska had 68 US patents and 62 foreign patents.

Heska has an exclusive distribution agreement with Henry Schein.

Sales & Marketing

Heska employs 85 direct sales professionals and has distribution representatives with Henry Schein.

Heska uses a grass-roots marketing campaign that profiles real customers and actual annual savings from  switching to Heska, and markets that data to veterinary practices within the same 100-mile radius, encouraging more clinics to make the switch to Heska.

Heska typically prices lower than competitors. The average price of a test is $19.75.

Heska also sells longer term five to six-year subscription agreements that offer attract discounts. Heska structures subscription contracts to implement ~4% annual price increases. This is called thei Rental Reset model.

Customers

Heska sells to veterinary practices worldwide.

Competitors

Its main competitors are IDEXX Laboratories and Abaxis (owned by Zoetis).

History

The company was founded as Paravax in 1988 in California as a research firm to prevent parasitic diseases in animals. In 1991, the company relocated to Colorado to be closer to the research facilities of the College of Veterinary Medicine at Colorado State University.

In 1995, the company changed its name to Heska. In 1997, the company went public.

In 2013, the company acquired 555 of Cuattro Veterinary to expand into veterinary imaging.

Management

Kevin S. Wilson (CEO): Kevin Wilson serves as CEO since 2014. Prior, he was CEO of Cuattro, a developer of radiography solutions for veterinarians. He also worked as Chief Strategy Officer of VCA hospitals.

Catherine Grassman (CAO): Catherine Grassman serves as CAO since 2017. Prior, she served as Controller for the company.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $78 
$90 
$105 
$130 
$129 
 Gross Profit $31 
$36 
 $44 
 $54 
 $58 
 Operating Profit($1)$3 
 $9 
 $17 
 $18 
 Net Income($1)$3 
 $5 
 $11 
 $10 
 EPS($0.21)$0.41 
$0.74 
$1.43 
$1.30 


Restoration Hardware
 
  Type     Public
  Ticker     NASDAQ: HSKA
  Industry Healthcare
  Founded 1988
  Headquarters Loveland, Co
  Revenues
$129mm (2017)
  Employees 345 (2017)
  Website heska.com